Wall Street Journal article - economic growth - Joseph T. Hallinan, "Once Seen as Risky, One Group of Doctors Changes its Ways," The Wall Street Journal, June 21, 2005, Pg A1

Essay by brasil_walkerUniversity, Bachelor's June 2006

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Mr. Hallinan illustrated that many doctors have been under fire with the rising amount of malpractice suits and thus resulting in higher premiums for malpractice insurance. However, anesthesiologists have shielded themselves against the rising premiums and in some cases been awarded a decrease in premiums. The change has been accredited to the anesthesiologists focus. Over the past few years they have focused more on improving patient safety. Their theory is that the less harm to patients would mean fewer lawsuits.

Definition of the Principle

The principle of economic growth is applicable to this article. Economic growth is the increase in the amount of all goods and services the economy produces. Growth is the result of the relationship between the quantity of inputs in production and the quantity of output resulting from production. This relationship is also referred to as the Growth Function. Growth is represented by the equation Output = A*f (Labor, Capital, Land).

Growth is achieved by an increase in Labor, Capital, and or Land. When there is a increased in any of the input factors economic growth will be achieved. Land, Labor, and Capital serve as the factors of production. Growth is also the increase in the standard of living in the economy. The quality of life in which people live in an economy is also known as standard of living. Standards of living include access to clean water, public education, and per capita income. Growth causes an increase in the standard of living for individuals in an economy. As the quantity of inputs increase, output will also increase. As the inputs are increased the production in an economy will increase as result of the production function. The increase in economic productivity will cause an increase in the income of businesses and individuals in the...